SunSirs: Styrene Market Fluctuated and Fell in August

Price trend

According to the SunSirs Commodity Analysis System, the styrene market saw a volatile decline in August, with prices averaging 7,646 RMB/ton at the beginning of the month and 7,550 RMB/ton at the end, a monthly decline of 1.26%. At the beginning of the month, plant capacity utilization fell to 77.73%, a 1.19% month-over-month decrease, due to the restart of a plant in Northeast China, limited production at a new plant in Shandong, and load adjustments at individual plants in East and South China. This supply-side support led to a slight increase in styrene prices. Styrene profit margins remained acceptable, and subsequent restarts and new capacity increased production. Downstream, the three S production lines saw mixed operating rates, with high EPS inventories leading to a significant decline in operating rates during the off-season. Operating rates in the ABS and PS sectors saw slight increases, but overall demand was declining. Weak fundamentals led to a volatile decline in the styrene market in August.

Analysis review

On August 28, international crude oil futures closed higher. The October contract for WTI crude oil futures settled at $64.60 per barrel, up $0.47, or 0.7%. The November contract for Brent crude oil futures settled at $67.98 per barrel, up $0.54, or 0.8%.

Cost side: Benzene: The benzene market fluctuated and rose in August. Affected by its own supply and demand and macro-privacy, the average price of benzene was 6,075 RMB/ton at the beginning of the month and 6,154 RMB/ton at the end of the month, with a monthly increase of 1.28%.

Styrene overseas market: On August 28, the closing price of the Asian styrene market remained stable, at US$870-875/ton FOB Korea and US$880-885/ton CFR China.

Market outlook

The weak fundamentals of the styrene market are expected to improve in the future. Many units are scheduled for maintenance in September, and the supply side is expected to strengthen. At the same time, the chemical market is expected to improve in September. With the expected increase in demand, the styrene market is expected to be supported in the future and prices are expected to be stronger.

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